Toshiba to invest in Rohm's new power chip plant in Japan's Miyazaki -sources (updated)

Rohm Co

07/12/2023 09:40

(Adds details, context)
    By Miho Uranaka and Makiko Yamazaki
       TOKYO, Dec 7 (Reuters) - Japan's Toshiba  6502.T  plans
to invest in Rohm's  6963.T  new plant in southern Japan to
produce power management chips, two sources with knowledge of
the matter said on Thursday.
    It was not immediately clear how much Toshiba was planning
to invest. However, it marks the two Japanese companies' first
joint project since Rohm decided to invest a total of 300
billion yen ($2 billion) to join a $14 billion buyout of
Toshiba.
    It also gives a glimpse of Toshiba's business plan following
the delisting of its shares, scheduled for Dec. 20.
    Toshiba and Rohm will receive subsidies of about 120 billion
yen to 130 billion yen from the Japanese government designed to
help promote the domestic semiconductor industry, said the
sources, who declined to be identified as the matter is private.
    The plan will be announced later this month, the sources
added.
    Rohm's new plant, to be built in Miyazaki Prefecture in the
southern island of Kyushu, will mainly produce silicon carbide
power chips, which have been gaining traction with electric car
makers as they can handle high voltages and are more power
efficient.
    A Toshiba spokesperson said nothing has been decided at this
point. A Rohm spokesperson declined to comment.

 (Reporting by Miho Uranaka and Makiko Yamazaki; Editing by
David Dolan and Mark Potter)
 ((david.dolan@thomsonreuters.com; +81 3 4563 2708;))